POA@HGV_Grace_Chap 11_NCA_Capital and Revenue Expenditure

Capital expenditure refers amounts spent to _____ and bring non-currents to their intended use.

Capital expenditure also includes amounts spent to enhance the non-current assets.

Capital expenditure refers amounts spent to buy and bring non-currents to their _____ use.

Capital expenditure also includes amounts spent to enhance the non-current assets.

Capital expenditure refers amounts spent to buy and bring non-currents to their intended use.

Capital expenditure also includes amounts spent to _____ the non-current assets.

Capital expenditure provide benefits for more than one year while revenue expenditure provide benefits which will be used within one year.

• True

• False

Capital expenditure provide benefits which will be used within one year while revenue expenditure provide benefits for more than one year.

• True

• False

When recording capital expenditure, we Dr Non-Current Asset account.

When recording revenue expenditure, we Dr Expense account.

• True

• False

When recording capital expenditure, we Dr Expense account.

When recording revenue expenditure, we Dr Non-Current Asset account.

• True

• False

Classify the following payment made by Atif Café.

Bought a delivery van to deliver its famous muffins.

• Capital expenditure

• Revenue expenditure

Classify the following payment made by Atif Café.

Paid to paint business name and logo on its delivery van.

• Capital expenditure

• Revenue expenditure

Answer explanation

Amount spent to bring the NCA to its intended use.

Classify the following payment made by Atif Café.

Atif Café paid for annual road tax for its delivery van.

• Capital expenditure

• Revenue expenditure

Answer explanation

Benefits used within one year.